The journey of building materials hardware enterprise to the capital

In recent years, the rapid development of China's hardware industry has brought many achievements, but the overall level is not high, China's hardware companies are mostly small and medium-sized private enterprises, low value-added products still restricts the company's brand promotion. On the other hand, SMEs are rarely listed in foreign countries, but most of them have high technological content, high value creation, and a broad product market.

Having experienced the complete CBBC cycle from 2007 to 2009, the development of China's capital market in recent years has reached a period of high tide, and the “market tide” has swept across the country. Hardware companies also have high enthusiasm and frequent listings, especially since 2010. Following the celebrity endorsements and cross-cutting operations, listing has become a direct keyword for the development of hardware companies.

From January to July 2010, hardware companies such as Jiangsu Shentong Valve and Hangzhou Superstar Technology were listed and became industry leaders. Another well-known hardware company, such as tile shaft and Luo Sha, is actively preparing funds for listing and deepening the capital market. With the country's economic development and its own strength has been growing and growing, for the company's continued development to obtain a stable long-term ** channels, small and medium-sized private enterprises listed on the ** become an important issue. However, the listing is not just a benefit in a certain sense, so it is very necessary to fully consider its influence factors. Faced with the huge temptation brought about by listing, it is of great practical significance to profoundly interpret the various advantages and adverse influences of hardware companies on the market and provide reference for hardware companies to correctly treat listed companies.

The total output value of China's home building materials industry in 2010 has exceeded 1 trillion yuan, surpassing the automotive industry for the first time. According to statistics, there are 80,000 home building materials companies in China. Although there are many brands, there are few well-known brands that consumers are familiar with. In recent years, despite the rapid development of the home building materials industry in China, there are few original designs and many plagiarism components, and most of the sales channels are controlled by dealers. With slight signs of trouble, companies can be fatally affected. For example, the introduction of an imported panel furniture production line will require more than 10 million yuan. The financial pressure on enterprises is very large. Simply relying on their own accumulated and rolling developments, they are far from meeting the huge capital requirements. In order for enterprises to achieve rapid expansion and enhance their ability to respond to market risks, they must rely on the power of capital. Plug in the wings of capital, companies will expand as quickly as possible.

Taking the furniture and hardware manufacturing company Meike Group as an example, Meike International Furniture Co., Ltd. (referred to as “Meike”) under the Meike Group landed on the Shanghai Stock Exchange in 2000. In November 2000, Meike Co., Ltd. raised RMB 510 million through its initial public offering, and the board of directors used RMB 200 million to build a domestic furniture chain sales network. According to Fei Xiang, general manager of the Investment Banking Department of China-Germany Securities, Meike shares RMB 1.2 billion in 2010. Among them, 500 million yuan was used to purchase shares of the company, and the rest was used to expand the scale of chain stores.

** The listing involves a wide range of issues, involving many benefits and twists and turns. Most of the home building materials companies that have successfully listed on the market have started to brewing their listing plans a few years ago, but have repeatedly postponed it. In spite of this, there are still many people who believe that domestic home building materials companies have started or are about to make initial public offerings.

Obviously, no matter whether the company can be successfully listed, it has started or will be the initial public offering at least as a new change in the home building materials industry in 2011. Everyone has new thoughts about their own development. It has become a trend to integrate resources and form alliances. Red Star Meikailong Group has a foreign capital background, and its capital operation ability and expansion ability are second to none in the industry. As early as in 2012, it announced its listing slogan. While Beijing Home House Investment Holding Group Co., Ltd., Yuexing Group, etc. are mainly based on their own funds, they also have higher reputation in the industry and the market is just around the corner.

At the same time, 10 companies, including Shixi Group and Jiumu Group, in Quanzhou, Fujian, have embarked on the transition. In addition, the Shenzhen Furniture Industry Association also reportedly attempted to rely on exhibitions, industrial education colleges and other listings. As the capital market increasingly tilts towards the home building materials industry, outsiders are constantly changing the impression that the home building materials industry is a small industry. Luo Baihui, a member of the association, believes that at present, China’s economic duality tends to be serious. When all kinds of capital are difficult to reconcile, it is worth learning from the capitalist laozi.

A rare financial crisis has caused trouble for many SMEs, and some large-scale home building materials companies are eager to move closer to capital. Listing is obviously one of the effective ways for companies to quickly raise funds, improve brand quality, and achieve industrial upgrading and rapid expansion. Domestic and foreign private equity and venture capital industries are paying more and more attention to China's home building materials industry. The capitalized operation of Chinese building material hardware companies has become the focus of the industry. The process of building materials hardware companies entering the capital market is a process that prompts the entire industry to gradually become transparent. Although the competition is fierce, it is a necessary transformation.